Calculate New Zombie's real GDP for Year 1 and Year 2

  To calculate New Zombie's real GDP for Year 1 and Year 2, we use the formula for GDP based on hours worked and productivity: [ \text{Real GDP} = \text{Work Hours} \times \text{Productivity} ] Step 1: Calculate Real GDP for Year 1 - Work Hours in Year 1: 200 hours - Productivity in Year 1: $8 per hour Now, we can calculate Year 1's real GDP: [ \text{Real GDP in Year 1} = 200 , \text{hours} \times 8 , \text{dollars/hour} = 1,600 , \text{dollars} ] Step 2: Calculate Real GDP for Year 2 - Work Hours in Year 2: 210 hours - Productivity in Year 2: $10 per hour Now, we can calculate Year 2's real GDP: [ \text{Real GDP in Year 2} = 210 , \text{hours} \times 10 , \text{dollars/hour} = 2,100 , \text{dollars} ] Step 3: Calculate the Rate of Economic Growth The rate of economic growth can be calculated using the formula: [ \text{Rate of Economic Growth} = \frac{\text{Real GDP in Year 2} - \text{Real GDP in Year 1}}{\text{Real GDP in Year 1}} \times 100 ] Now, substituting the real GDP values we calculated: [ \text{Rate of Economic Growth} = \frac{2,100 - 1,600}{1,600} \times 100 ] Calculating the numerator: [ \text{Rate of Economic Growth} = \frac{500}{1,600} \times 100 ] Calculating the fraction: [ = 0.3125 \times 100 = 31.25 ] Summary of Results - Real GDP in Year 1: $1,600 - Real GDP in Year 2: $2,100 - Rate of Economic Growth: 31.25% Explanation of Results - In Year 1, New Zombie had a real GDP of $1,600 based on its work hours and productivity. - By Year 2, with an increase in both work hours and productivity, New Zombie's real GDP rose to $2,100. - The economic growth rate of 31.25% indicates a substantial increase in economic activity and output from Year 1 to Year 2. This growth can be attributed to both an increase in the number of hours worked and an increase in productivity per hour worked.  

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